Isilon Systems, Inc. (Nasdaq: ISLN) has been one of the rumored acquisition targets in cloud computing and data storage. EMC Corporation (NYSE: EMC) signed a definitive agreement to acquire Isilon. EMC will pay $33.85 in cash per share for an aggregate purchase price of approximately $2.25 billion, net of Isilon’s existing cash balance. Isilon is a Scale-out network attached storage systems provider. company, based in Seattle, Washington.
What is interesting is that a premium may reign over the existing purchase price if the exponential returns seen so far this year in Isilon do not get in the way. That is what we have see of late. Both companies have announced that each board of directors unanimously approved the terms of the agreement.
The press release shows IDC data predicting that the Scale-out NAS segment will grow about 36% per year and will reach $6 billion in 2014. Isilon’s scale-out NAS systems are designed to begin small and scale quickly and non-disruptively up to 10 petabytes in size. EMC expects the combined revenue of these two highly complementary storage offerings to reach a $1 billion run-rate during the second half of 2012.
EMC has also reaffirmed all 2010 guidance with revenues of $16.9 billion and $1.25 non-GAAP EPS.
Isilon Systems closed at $26.29 on Friday and its 52-week range is $5.32 to $29.48; EMC closed at $21.72 on Friday and its 52-week range is $16.31 to $22.35.
JON C.OGG
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